Property Market Shift in Australia: Latest Trends and Insights

In spite of ongoing affordability concerns and economic volatility, Australia’s property market remained resilient in April 2025. The most recent CoreLogic Home Value Index (HVI) indicated a third successive month of price appreciation nationwide. Although growth rates are still moderate, this persistent upward trend is indicative of underlying strength in housing demand, particularly in some regional and capital city markets.

Here’s a breakdown of what’s behind the property market change, where values are going, and what investors and homeowners should remember.

National Property Values Rise Again in April

Australian dwelling values increased by 0.3% in April 2025, the third straight month of increase. This sets the national market at an all-time high, even with a number of market headwinds, such as affordability pressures and slowing transaction volumes.

Capital City Highlights:

• Darwin recorded the strongest gains with a 1.1% increase for the month.
• Sydney and Melbourne had moderate growth of 0.2% each.
• Brisbane, Adelaide, and Perth continue to go strong, with each one sitting at new record highs.

In comparison:

• Melbourne still sits 5.4% lower than its last market high.
• Sydney still lags by 1.1%.
• Hobart and Canberra (ACT) lag further behind at 11.1% and 6.4% lower, respectively, from their highs.

Key Market Movements in April 2025

Selling and Listing Activity Slows

The momentum of the property market wasn’t duplicated in selling activity. The week to April 20 recorded only 644 auctions, the quietest Easter week since 2019. Combined capital new property listings dropped to 19,650—the lowest levels of recent years for this time of year.

Implication: Constrained supply can fuel short-term price appreciation, but declining listings also suggest that sellers are being cautious amidst sustained affordability challenges and economic instability.

Regional Markets Outperform Capital Cities: Regional markets outperform capital cities, growing 0.6% in April compared to an average of 0.2% growth for capital city markets. The best regional performers are

• Regional South Australia (1.5%)
• Regional Western Australia (1.3%)

This trend captures the continued popularity of lifestyle-focused places, working-from-home opportunities, and cheaper housing away from the major city centers.

Houses Outperform Units

During the quarter, house values increased by 1.1%, surpassing unit growth of only 0.5%. This split was largely caused by demand for free-standing houses in Sydney, where land shortage and lifestyle factors continue to influence buyer behavior.

Note: In most inner-city markets, units are still relatively cheaper but recovering from post-COVID price corrections.

Rental Market Strengthens

Rental growth is steady nationwide. The national rental index increased for the third straight month by 0.6%. At the same time, gross rental yields reached 3.52%, their highest in almost a year.

Investor Outlook: Improved rental yields could counter some of the increasing cost of borrowing and generate new interest in investment property, particularly in high-returning regional markets.

Australian Property Market Outlook: A Mixed Yet Resilient Environment

Australia’s housing market outlook in 2025 is cautiously optimistic. Although April’s steady growth is a positive indicator, the overall environment is a mix of opportunity and challenge that changes from region to region.

Principal Drivers of Growth:

Low interest rates expected in the near future may enhance borrowing ability and make it more affordable for many Australians to buy property.

Tight housing supply, including fewer new listings and minimal building activity, is supporting property prices in many markets, particularly in high-demand suburban and regional areas.

Ongoing Challenges:

A lack of affordability is a significant hurdle, especially for first-home buyers in urban regions such as Sydney and Melbourne, where prices are still high despite recent easing. Harsh lending requirements by Australian banks and lenders are increasing the difficulty for some buyers to access finance.

Wider economic pressures, such as inflation, increasing living expenses, and employment market uncertainty, are making buyers and investors more wary.

For financial planners and property investors, the most important observation is the need for a market-specific strategy. Not all Australian markets are trending in the same direction. While Perth, Brisbane, and some regional WA and SA are experiencing strong demand, others, such as Hobart and Canberra, remain behind. A research-driven, customized approach is needed in dealing with this changing landscape.

Conclusion:

April 2025 has reaffirmed the strength of Australia’s property market in the face of continuing headwinds like affordability restrictions and economic instability. With national dwelling values having increased for the third month running and regional markets performing especially strongly, it is evident that property continues to be a desired asset in much of the nation.

Yet the uneven performance between cities and regions underlines the value of adopting a research-based, location-specific response. While Brisbane, Perth, and large parts of regional South Australia and WA are going very well, Melbourne, Hobart, and Canberra remain below previous highs.For financial planners, homeowners, and investors, too, the time is now to tread carefully. Better rental yields and lower interest rates are on the horizon, but only if they’re balanced against a firm handle on regional property conditions and lasting objectives. You might be a first-home buyer, expanding a portfolio, or working with clients—whichever it is, the Australian property market for 2025 requires caution matched with strategy.